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    Minemakers Limited
    Minemakers Limited (ASX:MAK) has 100% project ownership of the largest JORC compliant phosphate resource in the Northern Territory. Expectations of major increases in resource base in 2008/09. Minemakers also owns a large undeveloped fluorspar deposit at Moina, Tasmania, which also contains magnetite, tin, tungsten and base metals, tin and tungsten district located in North East Tasmania and tenements adjacent to 0.5 billion tonne Southdown magnetite iron ore system in the South West of Western Australia.

    Monday, November 03, 2008
    Minemakers Aims For Phosphate Production By 2010
    by Proactive Investors

    Phosphate Market Overview

    Most of the world’s phosphate rock is used to manufacture fertilizers, including products such as super-phosphate, mono-ammonium phosphate (MAP) and di-ammonium phosphate (DAP). Phosphorus is one of three essential ingredients for plant growth, along with nitrogen and potassium.
    Demand for phosphate has soared as global demand for bio-fuels soared and rising affluence in developing nations. Demand is high because farmers are growing more corn in the US and abroad.

    In the U.S., they're using the corn to make ethanol; overseas, in China, more corn is grown to feed cattle because the Chinese are starting to eat more meat. Rising middle classes in emerging markets like China and India are demanding more nutritious diets. The food crisis earlier this year pointed to how tight grain supplies are as inventories hover at historic lows.

    Ultimately, farmers will need to replenish soil or risk lower crop yields. A subsequent crop shortage would boost crop prices, increase profits and spur demand for fertilizers. Recently announced cuts in phosphate production by Mosaic Inc (NYSE:MOS) and Morocco's Office Cherifien de Phosphate (OCP), the world's leading phosphate exporter could have positive implications for phosphate rock prices.

    Until late 2007, world rock phosphate price, as determined by the largest exporter, Morocco, was about US$50/t fob. That price has increased to around US$500/t.

    Globally significant phosphate resource at Wonarah

    Minemaker’s Wonarah Phosphate project currently has a JORC-compliant inferred resource of 72Mt at 23% P2O5 with substantial resource increases expected to be announced by the end of the year.

    At below US50/t fob, Wonarah’s large phosphate deposits were not economically viable – chiefly due to the costs of transport over some 1,200 – 1,300kms to the port of Darwin. From the end of 2007 to the time of writing,. On all knowledge presently available to Minemakers, Wonarah has the potential to become a large, profitable and long term new rock phosphate exporting operation if current prices hold.

    Intending a fast track, low capital cost route using existing infrastructure to capitalise on current world demand and very high prices. Scoping study, new resource estimates and purchase of major capital items planned for the last quarter of 2008. At the planned production level of three million tonnes per annum, Minemakers would account for two to three per cent of world production of phosphate rock.

    First look comment by Andrew McCrea

    Minemakers is an interesting play going forward on increasingly high demand for phosphate, high phosphate prices and a share price that has retraced 78%. Softening demand for fertilizer has been prevalent in recent months in tandem with all commodity prices. However, looking ahead, the medium to longer term outlook for phosphate prices is good. Significant new phosphate capacity is expected on-stream in 2010/11. As a bulk commodity, the cost to move product to port is crucial in determining production break-even cost unit cost and ensure product is competitive.

    Shareholders
    AMP: 6%

    Fast Facts:-
    Share price (ASX:MAK): $0.65
    Share price range: 20c - $2.95
    Shares on Issue (million): 82.1m
    Market capitalisation (M): $53.4m
    Net cash (no debt): $10.5m
 
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